Starting July 1, 2024, there will be a mandatory registration of all employees working under agreements on work performed outside of an employment relationship (“DPP”), including employees not insured under the Sickness Insurance Act. Employers will be required to submit information about each DPP employee’s earnings to the relevant district social security administration each calendar month (by the 20th day of the following month, with the first submission for July 2024 due by August 20, 2024). Employers will fulfill this obligation using a new prescribed form, the “DPP Report,” on which they will also be required to electronically report the employee’s start and end of employment by the 20th day of the following month, along with their earnings. For employees who started their DPP employment before July 1, 2024, and continue to be employed under DPP in July 2024, the employer must report their employment start by August 20, 2024, at the latest.

By July 30, 2024, employers who have so far employed only DPP workers not participating in insurance under the Sickness Insurance Act must register in the employer registry and will be assigned a VS (“variable symbol”).

The DPP Report will be used to report all earnings, including those not subject to social security contributions. The report will be submitted for all months from the start to the end of employment. The submission methods for this report will remain the same as other electronic submissions for social security administration, i.e., through a data message from payroll software or via the ČSSZ ePortal. A definition of the DPP Report electronic submission (VPDPP) is available on the ČSSZ website for payroll software developers.

WHAT APPLIES TO DPP AND DPČ ALREADY FROM JANUARY 2024? From January 1, 2024, employees working under DPP and DPČ agreements will automatically be entitled to vacation, under essentially the same conditions as employees in an employment relationship (this also applies to agreements concluded, for example, during 2023). The right to vacation for a given calendar year is conditional on the fact that the employment relationship based on the agreement lasted continuously for at least 28 calendar days in that year, and the employee worked at least four times the fictitious 20-hour weekly working time, i.e., 80 hours (including any substitute times) during that period for vacation purposes.

Other new requirements include (i) expanded employer information obligations, (ii) the employer’s duty to schedule working hours for these employees as well, and (iii) the possibility for the employee to request in writing to be employed under an employment relationship if the agreement-based employment relationship lasted at least 180 days in the previous 12 months.